Unit II Test 1) The par or stated value of common stock is important for A) acco

Question

Unit II Test 1) The par or stated value of common stock is important for A) accounting purposes only. B) helping the investor determine the stock's intrinsic value. C) helping the board of directors determine the dividend payout D) helping the market determine the trading price of the stock. 2) You are given the following information on a company. Total Book Value Total Market Value $1,000,000- $12,804,000 Common shares out standing 600,000 Which one of the following statements is correct based on the information provided? A) The market price is $21.34 per share. B) The investment value is $2.67 per share. C) The par value is $2.67 per share. D) The book value is $21.34 per share. The decision of how much money to pay out in dividends is made by the A) board of directors. B) company shareholders. C) chief executive officer. D) chief financial officer. 4) ADRs I. are shares of U.S. companies traded on foreign exchanges. Il. are shares of foreign companies traded on U.S. exchanges. II. pay dividends in U.S. dollars if they pay dividends. IV. are subject to exchange rate risk. A) I and Il only B) ll and Ill only C) I.IlIl and IV only D) l, ll, lll and IV

Explanation / Answer

1. Ans: Accounting purposes only.

2. Ans: The market price is $21.34 per share

Explanation:

Market price per share = $12,804,000 / 600,000 = $21.34

3. Ans: board of directors

4. Ans: II, III and IV only.

Related Questions

Navigate

• Browse (All)
• Browse U
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.